رئيس سبكيم: 130 مليون ريال أثر توقف مصنع سمابكو في الربع الرابع.. وهناك مؤشرات ايجابية لتعافي الاسواق

Abdullah Al-Saadoon, CEO of Sahara International Petrochemical Co. (Sipchem)

Sahara International Petrochemical Co.'s (Sipchem) CEO Abdullah Al-Saadoon said that the maintenance work on the Sahara and Maaden Petrochemical Co. (SMAPCO) plant cost about SAR 30 million, adding that the impact on products was much greater, reaching SAR 100 million during the fourth quarter 2024.

 

In an interview with Al Arabiya TV, Al-Saadoon explained that Q4 2024 results were impacted by the one-month shutdown of the SMAPCO plant, in addition to the effects of acquisitions from peer manufacturing companies, which contributed an estimated SAR 57 million.

 

He added that 2024 was a challenging year, as product prices decreased by 8% year-on-year (YoY), and sales were affected by maintenance work at several plants.

 

Despite the lack of clarity, Al-Saadoun thinks there are encouraging signs of market recovery because of the improvement in the prices of some products in 2025. These include methanol, whose price increased by 8%, and EPA, whose price increased by 4%, in addition to the improvement in polypropylene prices.

 
The shutdown of some plants in Asia and Europe may help rebalance supply and demand, which will reflect positively on prices, said the CEO, pointing out that the resolution of geopolitical crises in Europe and the region will positively impact the markets this year.
 
Regarding the new import tariffs between Europe and the US, he explained that Sipchem may become more competitive in the European market, which accounts for 22% of the company's sales, expecting prices to rise as a result of these developments.
 
Furthermore, ending the Red Sea crisis will positively affect the company, as shipping costs have increased by about 25-30%, which means that stabilizing the situation will reduce export costs, thus reflecting positively on prices and profitability.
 
Commenting on the decision to shut down the ethyl acetate plant, Al-Saadoun stressed that Sipchem continuously reviews the viability of its plants, especially those that see poor profitability, noting that the temporary closure came to minimize losses until market conditions improve.
 

He added that the company imports feedstock for vinyl acetate and ethanol, which witnessed a surge in their prices during 2024, making the continued operation of the plant economically unfeasible.

 

Regarding the petrochemical sector, Al-Saadoun said that the sector goes through cycles of ups and downs, as is the case with other sectors, but remains one of the essential industries that are part of various aspects of life.

 

He emphasized the importance of petrochemicals in providing sustainable economic solutions, ensuring continued demand for its products in the medium and long term. Al-Saadoon reiterated that Sipchem remains committed to investing heavily in the future of the petrochemical industry.

 
Sipchem posted a 64% drop in the 2024 net profit to SAR 426.1 million, compared to SAR 1.17 billion a year earlier. The fourth-quarter net earnings tumbled 88% to SAR 19.9 million from SAR 158.7 million in Q4 2023, according to Argaam's data.

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